EIDL - SBA Economic Injury Disaster Loans and Other Relief Options

If your business needs cash now due to the COVID-19 pandemic, you may be eligible for an Economic Injury Disaster Loan (EIDL) Emergency Advance of $10,000 from the Small Business Administration (SBA).

The purpose of the EIDL program is to provide working capital to pay fixed debts, payroll, accounts payable, and other bills. These loans are not intended to replace lost sales or revenue or for business expansion.

The $10,000 Emergency Advance is only a portion of the total EIDL amount available from the SBA. The EIDL program can provide up to $2 million in a low-interest loan with a long-term repayment plan. 

EIDL & Emergency Advance Overview

  • EIDL Eligibility: UPDATE -- At this time, the SBA is only accepting EIDL applications from agricultural businesses with 500 or fewer employees. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. 
    • Agricultural businesses includes those engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b))
  • EIDL Advance Amount: Up to $10,000 - this Advance does not need to be repaid!
  • EIDL Advance Terms: None; does not have to be repaid
  • EIDL Total Loan Amount: Up to $2 million
  • EIDL Total Loan Terms: 3.75% for small businesses; 2.75% for non-profits; up to 30 years for repayment
  • EIDL and PPP Loan: You can also roll an EIDL into a Paycheck Protraction Program (PPP) Loan or cancel it in favor of using the PPP Loan only. However, you cannot claim the Employee Retention Credit (ERC) if you have an EIDL and/or a PPP Loan.

Apply directly for the EIDL Emergency Advance directly via the online SBA COVID-19 EIDL Application (this loan is not accessible from banks). The SBA is aiming to distribute funds within a few days of application approval. 

More SBA Loan and Relief Programs

The SBA has several other business interruption loan and relief programs to help small business owners maintain payroll and pay operating expenses during the COVID-19 pandemic:

  • Paycheck Protection Program; PPP Loans provide funds to cover up to 8 weeks of payroll and some operating expenses to incentivize businesses to keep workers employed during the COVID-19 pandemic. Up to 100% of the loan amount may be forgiven if workforce and compensation levels are maintained, and at least 75% of the loan is spent on payroll costs.
    Watch our webinar on PPP Loans >>
    Learn more about PPP Loans >>
    Find a PPP Loan Lender >>
  • SBA Debt Relief; If you have an SBA 7(a), 504 or microloan that is in good standing, the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. They will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. 
    Learn more about SBA Debt Relief >>
  • SBA Express Bridge Loans; An SBA Express Bride Loan allows businesses that have a relationship with an SBA Express Lender to quickly access up to $25,000. 
    Learn more about SBA Express Bridge Loans >>

Before accepting a loan, consult with your CPA, accountant, or business adviser (check your local Small Business Development Center (SBDC). You can also contact the Colorado Small Business COVID-19 Disaster Response Hotline at 303-860-5881 (available Monday-Friday, 8am-5pm).

Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take in response to the COVID19 Pandemic are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.

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